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Dollar Tree Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Dollar Tree has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Dollar Tree's Piotroski F-Score or its related term are showing as below:

DLTR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of Dollar Tree was 9. The lowest was 3. And the median was 6.


Dollar Tree Piotroski F-Score Historical Data

The historical data trend for Dollar Tree's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dollar Tree Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 8.00 4.00

Dollar Tree Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.00 8.00 6.00 4.00 6.00

Competitive Comparison

For the Discount Stores subindustry, Dollar Tree's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Dollar Tree Piotroski F-Score Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Dollar Tree's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr22) TTM:Last Year (Apr21) TTM:
Net Income was 282.4 + 216.8 + 454.2 + 536.4 = $1,490 Mil.
Cash Flow from Operations was 179.9 + 282.6 + 412.8 + 538.5 = $1,414 Mil.
Revenue was 6343.2 + 6417.7 + 7080.6 + 6902.6 = $26,744 Mil.
Gross Profit was 1864 + 1766 + 2140.3 + 2343 = $8,113 Mil.
Average Total Assets from the begining of this year (Apr21)
to the end of this year (Apr22) was
(21050.7 + 20445.2 + 21390 + 21721.8 + 22372.3) / 5 = $21396 Mil.
Total Assets at the begining of this year (Apr21) was $21,051 Mil.
Long-Term Debt & Capital Lease Obligation was $8,506 Mil.
Total Current Assets was $6,282 Mil.
Total Current Liabilities was $4,290 Mil.
Net Income was 261.5 + 330 + 502.8 + 374.5 = $1,469 Mil.

Revenue was 6277.6 + 6177 + 6767.9 + 6479.7 = $25,702 Mil.
Gross Profit was 1916.2 + 1924.4 + 2152.8 + 1967 = $7,960 Mil.
Average Total Assets from the begining of last year (Apr20)
to the end of last year (Apr21) was
(20471.8 + 20671 + 20652.2 + 20696 + 21050.7) / 5 = $20708.34 Mil.
Total Assets at the begining of last year (Apr20) was $20,472 Mil.
Long-Term Debt & Capital Lease Obligation was $8,327 Mil.
Total Current Assets was $5,305 Mil.
Total Current Liabilities was $3,902 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Dollar Tree's current Net Income (TTM) was 1,490. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Dollar Tree's current Cash Flow from Operations (TTM) was 1,414. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Apr21)
=1489.8/21050.7
=0.07077199

ROA (Last Year)=Net Income/Total Assets (Apr20)
=1468.8/20471.8
=0.07174748

Dollar Tree's return on assets of this year was 0.07077199. Dollar Tree's return on assets of last year was 0.07174748. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Dollar Tree's current Net Income (TTM) was 1,490. Dollar Tree's current Cash Flow from Operations (TTM) was 1,414. ==> 1,414 <= 1,490 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr21 to Apr22
=8506/21396
=0.39755094

Gearing (Last Year: Apr21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr20 to Apr21
=8327/20708.34
=0.40210852

Dollar Tree's gearing of this year was 0.39755094. Dollar Tree's gearing of last year was 0.40210852. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Apr22)=Total Current Assets/Total Current Liabilities
=6282.3/4289.9
=1.46443973

Current Ratio (Last Year: Apr21)=Total Current Assets/Total Current Liabilities
=5304.9/3902.2
=1.35946389

Dollar Tree's current ratio of this year was 1.46443973. Dollar Tree's current ratio of last year was 1.35946389. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Dollar Tree's number of shares in issue this year was 226.4. Dollar Tree's number of shares in issue last year was 234.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8113.3/26744.1
=0.30336785

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7960.4/25702.2
=0.30971668

Dollar Tree's gross margin of this year was 0.30336785. Dollar Tree's gross margin of last year was 0.30971668. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Apr21)
=26744.1/21050.7
=1.27046131

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr20)
=25702.2/20471.8
=1.25549292

Dollar Tree's asset turnover of this year was 1.27046131. Dollar Tree's asset turnover of last year was 1.25549292. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+1+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Dollar Tree has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Dollar Tree  (NAS:DLTR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Dollar Tree Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Dollar Tree's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollar Tree Business Description

Dollar Tree logo
Address
500 Volvo Parkway, Chesapeake, VA, USA, 23320
Dollar Tree operates discount stores in the U.S. and Canada, including over 7,800 shops under both its namesake and Family Dollar units (nearly 15,700 in total). The eponymous chain features branded and private-label goods, generally at a $1.25 price. Nearly 50% of Dollar Tree stores' fiscal 2020 sales came from consumables (including food, health and beauty, and household paper and cleaning products), just over 45% from variety items (including toys and housewares), and 5% from seasonal goods. Family Dollar features branded and private-label goods at prices generally ranging from $1 to $10, with over 76% of fiscal 2020 sales from consumables, 9% from seasonal/electronic items (including prepaid phones and toys), 9% from home products, and 6% from apparel and accessories.
Executives
Flanigan John W officer: Chief Supply Chain Officer 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Gatta Lawrence J. Jr. officer: Chief Merchandising Officer FD C/O LONGS DRUG STORES CORPORATION 141 NORTH CIVIC DRIVE WALNUT CREEK CA 94596
Mantle Ridge Lp other: Director by deputization 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Kelly Edward J Iii director CIT GROUP INC ONE CIT DRIVE LIVINGSTON NJ 07039
Hilal Paul C director MANTLE RIDGE, L.P. 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Mr Cobalt Advisor Llc other: Director by deputization 712 FIFTH AVENUE, 17TH FLOOR NEW YORK NY 10019
Scott Bertram L director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Laschinger Mary A director 400 ATLANTIC STREET STAMFORD CT 06921
Grise Cheryl W director NORTHEAST UTILITIES 107 SELDEN STREET BERLIN CT 06037
Dreiling Richard W director, other: Executive Chairman C/O SAFEWAY INC 5918 STONERIDGE MALL ROAD PLEASANTON CA 94588
Hulett Jennifer officer: Chief Human Resources Officer 1500 SOLANA BLVD. SUITE 3400 WESTLAKE TX 76262
Alasdair James officer: EVP Merch and Supply Chain 100 PIER 1 PLACE FORT WORTH TX 76102
Park Winifred director 1 EXPRESS DRIVE COLUMBUS OH 43230
Lech Michael officer: Chief Logistics Officer 500 VOLVO PARKWAY CHESAPEAKE VA 23320

Dollar Tree Headlines

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